Telemate.Net Software Inc. –

ATLANTA – Telemate.Net Software Inc., a provider of software that monitors Internet and voice networks, went public September 29, offering 3.5 million shares at $14 apiece. The company’s stock priced at the high end of its $12 to $14 filing range.

Underwritten by SoundView Technology Group, J.C. Bradford & Co. and The Robinson-Humphrey Co., the initial public offering left 7.2 million shares of stock outstanding.

Venture backers included LiveOak Equity Partners, Noro-Moseley Partners and Sirrom Investments Inc. Collectively, selling shareholders will sell 216,000 shares of stock, 24,000 of which will be sold by Sirrom Investments Inc.

Telemate.Net enables businesses to extract large amounts of network usage data within their communications networks and to translate the information into meaningful management reports.

The expected $42 million generated from the IPO will be used to repay debt, for working capital and for general corporate purposes including sales and marketing, product development and pursuing strategic acquisitions and business relationships.

Telemate.Net was profitable in its first two years of operation, earning $136,000 in 1996 and $38,000 in 1997. The company lost $1.3 million in 1998.

Murali Anantharaman, a general partner at LiveOak, will join the board within 90 days of September 28.

Telemate.Net – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Six Months Ended June 30

1996 1997 1998 1998 1999

Total revenue 6,899 8,948 10,382 5,024 5,423

Net income 136 38 -1,306 -716 -1,276

Net income per share 0.04 0.01 -0.4 -0.22 -0.4